spacer
spacer
spacer
spacer



CPA LOGO
spacer
Latest News
Hot Issues
Businesses ghosting the ATO targeted in debt collection blitz
Claiming the tax-free threshold: getting it right
Aussies tired of ‘dodgy tax criminals’, warns ATO
Protect your small business by following these essential steps.
Super guarantee a focus area for ATO business debt collection
Controversial ‘Airbnb tax’ set to become law
Withholding for foreign residents: an ATO focus area
1 in 3 crypto owners confused about tax, study reveals
20 Years of Silicon Valley Trends: 2004 - 2024 Insights
ATO reveals common rental property errors from data-matching program
New SMSF expense rules: what you need to know
Government releases details on luxury car tax changes
Treasurer unveils design details for payday super
6 steps to create a mentally healthy and vibrant workplace
What are the government’s intentions with negative gearing?
Small business decries ‘unfair’ payday super changes
The Leaders Who Refused to Step Down 1939 - 2024
Time for a superannuation check-up?
Scam alert: fake ASIC branding on social media
Millions of landlords the target of expanded ATO crackdown
Government urged to exempt small firms from TPB reforms
ATO warns businesses on looming TPAR deadline
How to read a Balance Sheet
Unregistered or Registered Trade Marks?
Most Popular Operating Systems 1999 - 2022
7 Steps to Dealing With a Legal Issue or Dispute
How Do I Resolve a Dispute With My Supplier?
Changes to Casual Employment in August 2024
Temporary FBT break lifts plug-in hybrid sales 130%
The five reasons why the $A is likely to rise further - if recession is avoided
June quarter inflation data reduces risk of rate risk
‘Bleisure’ travel claims in ATO sights, experts warn
Articles archive
Quarter 3 July - September 2024
Quarter 2 April - June 2024
Quarter 1 January - March 2024
Quarter 4 October - December 2023
Quarter 3 July - September 2023
Quarter 2 April - June 2023
Quarter 1 January - March 2023
Quarter 4 October - December 2022
Quarter 3 July - September 2022
Quarter 2 April - June 2022
Quarter 1 January - March 2022
Quarter 4 October - December 2021
Quarter 3 July - September 2021
Quarter 2 April - June 2021
Quarter 1 January - March 2021
Quarter 4 October - December 2020
Quarter 3 July - September 2020
Quarter 2 April - June 2020
Quarter 1 January - March 2020
Quarter 4 October - December 2019
Quarter 3 July - September 2019
Quarter 2 April - June 2019
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 2 of 2017
Articles
‘Bank-like heists’ make way for new wave of cyber crime
ATO reports on key contraventions for 2016-17
ATO, mid-tiers warn on common expenses myths
SMSF trustees told to take action on contributions
Higher instant asset write-off threshold for small business extended
Australian population figures
New data points to spiralling retirement costs
Personal insolvency numbers spike across Australia
ATO cracking down on taxable fringe benefits
Intangible capital improvements made to a pre-CGT asset
The three core pillars of this year's budget
Federal Budget - 2017-18 - Overview
Does your business import or export goods and services?
Federal Budget - 2017-18 - Budget documents
When does an asset cost less than $20,000? Depreciating assets: composite items
ATO finalises guidance for capped defined income streams
Warning on trap with trust deed updates
2011 Census - what was the make up of your area?
It’s no secret that Australians have some of the largest houses in the world.
Resources on our site to help you and your family.
ATO defends approach to SG compliance
Essential steps for SMSF clients before 30 June
New tax incentives for early stage investors
FBT Reminder – Odometer Reading
ATO on 'aggressive' debt recovery hunt
More ATO downtime looms ahead of tax time
Tax debt release applications refused
Troublesome tax system overhaul picks up speed
Government to ‘put to bed’ uncertainties with TRIS
Travel expense and transport of bulky tools claim denied
New law sheds light on global tax issues
Report tips housing price spikes to wipe out super savings
ATO reports on key contraventions for 2016-17

WATCH OUT FOR THESE - The ATO has identified the most commonly reported contraventions this financial year and flagged concerns over auditors misreporting illegal early release as loans to members.



       


 


ATO assistant commissioner Kasey Macfarlane said there has been a downward trend in the number of auditor contravention reports (ACRs) received in the 2016-17 financial year compared to the same time last financial year.


“There has been around a 10 per cent drop [in 2016-17]. Usually the number of ACRs we receive is around 9,000 to 11,000,” said Ms Macfarlane.


The ATO continues to see the same types of contraventions reported, she said, with loans to members and in house assets still by far the most common.


“They were in the top three for the 2015-16 financial year, and they’ve been in the top three for at least the last five years. So it’s something that’s very common and something SMSF auditors just probably need to be mindful of and look at,” Ms Macfarlane noted.


Ms Macfarlane said the ATO is concerned that some of the contraventions reported to the ATO as loans are in fact illegal early release upon closer inspection.


“So SMSF auditors, when they are looking at monies inappropriately withdrawn from an SMSF, need to [verify] themselves if it is a loan,” she said.


“We’d expect to see evidence and documentation that there was in fact a loan or at least an intention to create a loan, and sometimes when we have a closer look none of that evidence is in place, so that’s just something to be mindful of.”


Among the in-house asset contraventions, the majority of them, she said, relate to investments in related unit trusts, loans to related companies or loans to related unit trusts.


“Where SMSFs have those types of investments, it’s important that SMSF auditors take a close look at those to make sure that’s okay,” she said.


Ms Macfarlane added that a large number of the contraventions reported to the ATO also relate to funds that don’t meet the definition of an SMSF because something has happened in the fund.


“For example, a member may have become bankrupt and they haven’t taken the necessary steps within that six-month period to either restructure the fund or roll the monies out of the SMSF sector,” she explained.


“Overall only 2 per cent of SMSFs each year have ACRs reported to us, and 50 per cent of those, by the time they’re reported to us, they’re reported as rectified, so that is a very pleasing result.”


 


MIRANDA BROWNLEE
26 Jun 2017
www.smsfadviser.com


 




28th-June-2017
spacer
Privacy Policy | Disclaimer